In trading and in life, one must learn to stop loss.


It's harder to stop loss in life. Just like when a friend keeps complaining about a terrible person, you say: "Stop loss in time!" Yet, more often than not, they are still entangled with that terrible person.
To execute a stop loss in trading, press the button, and in 0.1 seconds say goodbye to the bad stuff. But in reality, there is no such button, everything is like a tangled mess.
Since that's the case, what is the key to stop loss in life? I believe it is: clearly defining where your bottom line is.
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ChenKehanTalksAboutvip
· 11-27 15:08
"Stop loss" is commonly known as Cut Loss. It refers to investors selling decisively to preserve their principal when the price falls to a certain level, in order to avoid further losses. The difficulty in implementing stop loss arises from the sunk cost fallacy, loss aversion, and disposition effect. While the reasoning is understood, it is not easy to execute.
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